ECB policy to remain 'expansive' for now
The European Central bank’s monetary policy is “an expansive monetary policy and it will remain expansive as long as necessary,” according to its Executive Board member Joerg Asmussen.
Mr Asmussen addressed an event organised by the American Chamber of Commerce in Berlin this week, saying the euro zone was not yet ready for the ECB to break down its policy, adding there was a need for central banks to coordinate on monetary policy.
Mr Asmussen has urged cooperation and cohesion, saying changes in one region's stance could spill over into othes.
Mr Asmussen directed part of his address at the United States, saying it was heading towards the upper limit of its debt ceiling again, he does however believe it would find a pragmatic short-term solution.
But short-term action may not cut it, he said “I think the Unites States needs to reorganise its fiscal policy in the long-term and not always try to alter its debt limit every couple of months to ensure the central state is still able to act.”
Mr Asmussen’s comments come after U.S. Treasury Secretary Jack Lew said this week that it would exhaust its borrowing capacity around October 17, with only about $30 billion in cash left in the coffers. The estimate has sent some authorities scrambling to push up the $16.7 trillion limit.